Employees who are closer to retirement are less likely to know how much money they have saved up in their various pensions, according to a new survey from Cushon.

The fintech firm used Censuswide to survey 2,009 workers enrolled in a workplace scheme and discovered that 41% of those surveyed aged over 55 did not know the total value of their pension pot.

In contrast, only 28% of all those questioned were unaware of how much they have saved to date for their retirements. In addition, 86% of employees aged over 55 have never transferred one pension into another pot.

Cushon said the survey results also show that nearly a third of savers (28%) have already lost track of at least one pension by the age of 35, proving that the lack of clarity over the value of pensions pots is symptomatic of the low levels of engagement that still plague UK pensions.

It said that older employees can have, on average, six jobs in their careers, making it harder for them to keep on top of their various pension schemes.

It warned that the situation is also increasing the risk of pension providers automatically de-risking pension investments too early — as people do not update each provider with their planned retirement date, which then adversely impacts total savings.

In light of the survey results, Cushon said employees with multiple pension pot should at least consider if consolidating their pensions into one pot is right for them.

The company argued that the transfer process for DC pots should be simplified, including the automatic transfer of people’s accrued pensions when employers change workplace pension providers. Cushon said this should apply to all pension pots regardless of size.

“Millions of older employees are sleepwalking their way into retirement with no idea of whether they’ll be able to afford the lifestyle they’ve spent decades working towards,” said Cushon director of policy and research, Steve Watson.

“Some of these savers will only be a few of years away from retirement and with many juggling multiple pots they not only risk losing track of them but make it harder for them to know if they have enough saved.

“It needs both Government and providers to take the lead here.

“For Government, pushing through the delayed introduction of the pensions dashboard is just a first step — supporting pot consolidation by allowing automatic transfers when employers change workplace pension providers would be a major leap forward.

“Also, the government’s proposal on small pots, which we support, is great but the issue of lost pots is not just limited to small pots it’s an issue across the board.

“Providers need to be embracing technology and simplifying how savers engage with their pensions, by removing jargon and offering apps allowing people to easily manage their savings should be an industry standard.”


This article first appeared on our sister title, Pensions Age.

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